Ethereum has officially completed one of the most ambitious global experiments in history. The combined ETH locked into its Proof-of-Stake (PoS) system has recently reached an all-time record. Currently, 34.6 million ETH worth just under $90 billion are staked — a sign of growing confidence in the Ethereum network. A recently released analysis paints Ethereum’s native asset, ETH, as highly undervalued. In turn, it argues this makes ETH a prime candidate for inclusion in institutional digital asset portfolios.
The 38 page report, called The Bull Case for ETH, is clearly targeting institutional buyers. It really is a collaborative project, as twenty-one authors contributed to this piece. Other key contributors are Ethereum ecosystem leader, Mike Silagadze, investor and researcher William Mougayar and Vivek Raman from Etherealize.
Ethereum's Security and Reliability
Ethereum is the most secure and decentralized blockchain. The report covers Ethereum’s unrivaled security and complete lack of downtime. This is what makes it a very attractive option for institutional investors who may be searching for a reliable blockchain platform.
"Whether you measure the number of stablecoins, number of tokenized assets, the amount of institutions building infrastructure, including layer 2s — Deutsche Bank is building a layer 2," - Vivek Raman
Specifically, Raman pointed to the dynamic ecosystem that’s developing on Ethereum. He noted the increase in the supply of stablecoins, tokenized assets, and the institutions developing infrastructure on public technology. He went on to call out Deutsche Bank’s participation in the development of a layer 2 solution.
Institutional Adoption and ETH's Potential
The report goes on to predict that Wall Street will soon come to appreciate Ethereum’s full worth. It makes the case that institutional adoption of Ethereum starts with ETH, the asset, as so many people forget to consider. The report goes on to argue that ETH is fundamentally mispriced and represents a serious investment opportunity.
"One thing we noticed, as part of ongoing institutional conversations, is people know that stablecoins are on Ethereum, people know that tokenized assets are largely on Ethereum," - Vivek Raman
Raman saw in each of these institutions a recognition that stablecoins and tokenized assets on Ethereum are here to stay. They often dance around the subject of ETH—which is, of course, a great asset in its own right! He thinks that ETH at today’s price of $2,500 is ridiculously low. When he looks at it relative to what it was priced at during the last bull cycle, its potential becomes even clearer.
Price Predictions and Future Outlook
ETH’s price today has gotten a boost after several months of trailing at or under $2,000 thanks to the post-Pectra bump. Yet, it is still more than 30 percent below its historic high. Raman suggests that the market is underestimating ETH's potential, drawing parallels to Bitcoin's journey to becoming recognized as digital gold.
"In the last cycle, Bitcoin went from $10,000 to $100,000," - Vivek Raman
"Well, the next best risk adjusted trade, we think, is repricing from here where ETH is now $2,600 to a lot higher." - Vivek Raman
"We put short term $8,000, the next cycle $80,000 and then if and when [Ethereum] does become a global economic infrastructure, a civilizational infrastructure, the asset that's used across geopolitical trade, if you have a sense of that, then ETH could be much higher.”" - Vivek Raman
In the near term Raman is forecasting ETH to reach $8,000. He thinks it can get up to $80,000 in the next cycle. He further argued that if Ethereum ends up as the infrastructure of a new global economic operating system, then its value would be many times that amount.
